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“There is a progressive history between us, we come broadly from the same stable a century or so ago.

“By talking to Labour we do have people who are pro-constitutional reform, some people who are genuinely positive about the environment. Many of them do understand that their leadership has been very stupid in their position towards us over the least two and a half years. We didn't choose the Tories over them; we reacted to the arithmetic.”

Mr Farron said a so-called “confidence and supply” arrangement, whereby the Lib Dems back a minority Labour government’s Budget but vote independently on other issues, was a possibility after the next election.

“I think in the future 'confidence and supply' might be an option,” he said.

“It's entirely possible. I'm not saying we should do, I'm saying there's an extra thing on the menu this time round.”

He also called for tax cuts for the poor and the use of quantitative easing to boost social housing construction instead of "squandering cash on wealthy people".

Mr Farron also insisted that the Lib Dems would have to return to the issue of tuition fees at the next election, just as the party’s leader Nick Clegg attempted to draw a line under the row with a video apology.